Withdrawals and/or deposits to checking accounts generally take some period of time to clear an account. For example, the account user may write a check to a third party, and the third party may take days or weeks to cash the check. Therefore, the ledger balance of the account as recorded by the bank may not include all outstanding checks or transactions. Bank customers generally keep track of outstanding transactions in a register balance to avoid inadvertently overdrawing their account, and financial institutions may charge a penalty if an account is overdrawn. The “register” balance is the current balance on an account if all outstanding transactions were processed. For example, if an account had an initial balance of $500 and if a check were written on the account for $300, the register balance would be $200. However, until the check is cashed, the account would have an actual ledger balance of $500.
The register balance may be monitored by manually writing down all transactions in a register balance sheet, which bank customers may keep with their checkbook. Computer software has also been developed to monitor the register balance of an account, such as Quicken™ or Microsoft Money™ software. Software may also be used on hand held devices, such as a personal digital assistant (PDA) or mobile communications device, such as a cellular telephone.
Despite these techniques for monitoring the register balance of an account, financial services customers may still experience difficulty in monitoring the register balance of their accounts. Financial services customers may keep extra cash in the account in case a mistake in the register balance is made. Funds that could be used for other purposes may be tied up as a reserve in this attempt to avoid depleting the account. This money could otherwise be spent or invested, such as in an interest-bearing account or investment fund.
This problem may be exacerbated when more than one party uses a single account, such as may be the case with family members who share an account or with a business. Multiple parties to an account may struggle with how to communicate transactions to one another.